What are the major weaknesses of exogenous growth theory Which-00729
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vu cs501 Advance Computer Architecture.
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vu cs501 Mid Term Solved Past Paper No. 1.
EXOGENOUS GROWTH THEORY
The Exogenous growth model, also known as the Neo-classical growth model or Solow growth model is a term used to sum up the contributions of various authors to a model of long-run economic growth within the framework of neoclassical economics.
Exogenous growth theory suffered from three major weaknesses: i.e It could not explain why the gap between the poor and rich countries had widened (anticatch up),
- ii. It could not explain why some countries in East Asia had apparently grown consistently on the back of higher saving rates, and
- iii. It modeled technology as exogenous, and beyond the influence of policy.
PART B SOLUTION
In economics, endogenous growth theory or new growth theory was developed in the 1980s as a response to criticism of the neo-classical growth model OR exogenous growth theory
